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From: ark@alice.UUCP (Andrew Koenig)
Newsgroups: net.invest
Subject: Re: Buying a house - mortgage types
Message-ID: <3699@alice.UUCP>
Date: Mon, 6-May-85 16:24:36 EDT
Article-I.D.: alice.3699
Posted: Mon May  6 16:24:36 1985
Date-Received: Wed, 8-May-85 01:26:29 EDT
References: <33700005@hp-pcd.UUCP>
Organization: Bell Labs, Murray Hill
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>    When comparing different loans you should condense everything down into
> a simple APR for each seperate loan. This requires that you:


>   (1) Compute the payments for a loan

>   (2) Find out what the Total finance charge is that you must pay at closing.
>       This normally includes a origination fee,Points, first months interest
>       and anything else the bank wants to throw on.

>   (3) The amount that you are actually borrowing is the loan amount minus all
>       the up front finance charges. Take this and the payment amount and
>       figure out the actual interest rate.

It may well be easier than this.  I think that people who want to lend
you money are required by Federal law to tell you the APR of the loan
if you ask.  Thus you only need to do the calculations if you don't
trust them.

Of course, you probably shouldn't trust them.